Washington, D.C. — The following are opening remarks, as prepared for delivery, from Ranking Member of the House Committee on Transportation and Infrastructure Rick Larsen (D-WA) and Ranking Member of the Subcommittee on Coast Guard and Maritime Transportation Salud Carbajal (D-CA) during today’s hearing titled, “Review of Fiscal Year 2025 Maritime Transportation Budget Requests, Pt. 1: Maritime Administration and Federal Maritime Commission.”
Video of Ranking Members Larsen’s and Carbajal’s opening statements can be found here and here.
More information on the hearing can be found here.
Ranking Member Larsen:
Mr. Chairman, thank you for scheduling today’s hearing to review the Fiscal Year 2025 budget requests of the Maritime Administration and the Federal Maritime Commission.
Together, these agencies promote the United States maritime industry and protect consumers against unfair shipping practices.
Ocean shipping is dominated by foreign shipping companies who transport over 98 percent of imports and exports. Between pandemic related supply chain issues and ongoing international conflicts, we have learned the importance of a vibrant U.S. maritime industry. Now is the time to strengthen and support that industry.
The President’s fiscal year 2025 budget request includes an 11 percent decrease in discretionary funds for the Maritime Administration and a 21 percent increase for the Federal Maritime Commission.
While the funding request for the FMC will ensure fairness for American shippers and consumers, I’m concerned that MARAD will not have the resources it needs to ensure a robust supply chain.
Investment in the U.S. maritime industry is long overdue. For years, we have faced a mariner shortage as workers retire and the industry struggles to appeal to younger Americans. To attract new workers, we must strengthen education and training as well as ensure good wages and a robust job market for those entering the industry.
I am disappointed that the President’s budget includes a 35 percent cut in funding for the Port Infrastructure Development Program. While there remains robust funding for the program as the result of advanced appropriations included in the Bipartisan Infrastructure Law, it was never the intent of Congress for that funding to supplant regular appropriations.
Infrastructure investments in seaports provide opportunities to bolster our economy, strengthen the supply chain, create and sustain jobs and enhance our international competitiveness.
In my own district, the Swinomish Port Authority—a small port and one of the few Tribal-run port authorities—received an $11 million grant to fund a master plan for the port and begin the design and engineering of a new commercial pier. The local and regional impact of this project is immeasurable.
Small ports are lifelines to local communities and are a critical part of the supply chain that can ease congestion at larger ports. That is why robust funding must be provided for small ports through the Port Infrastructure Development Program.
I am pleased that the President’s budget request includes $20 million for the Small Shipyard Grant Program. I have several small shipyards in my district, and I have seen how these grants can be used to create jobs and bolster both the local and national economy.
I would be remiss if I did not bring up Admiral Phillip’s ongoing work to address sexual assault and sexual harassment at the United States Merchant Marine Academy, the State Maritime Academies and across the commercial industry. Sexual assault and harassment have no place in society. Every mariner deserves to be respected and deserves to feel safe out at sea.
I commend Admiral Phillips and the Maritime Administration for their work in awarding the Bipartisan Infrastructure Law funding and I look forward to seeing what projects are selected this fall.
Finally, last Congress, this Committee passed the Ocean Shipping Reform Act of 2022. Under Chairman Maffei’s leadership, the Federal Maritime Commission has been quick to implement new requirements for ocean carriers and investigate unfair shipping practices.
The Federal Maritime Commission will require more funding and personnel to fully address the new investigative and prosecutorial authorities provided under the law. I am heartened to see that the President understands this and included in his budget request a 21 percent increase for the Federal Maritime Commission.
Since passage of the Ocean Shipping Reform Act of 2022, container prices have fallen, vessel backlogs have eased, and the FMC has revamped the reporting process making it easier for shippers to file complaints.
Currently, the FMC is monitoring shipping fees and surcharges associated with the shipping disruptions in the Red Sea and drought conditions in the Panama Canal.
Congress has asked a lot of the FMC and the President’s budget request recognizes the need for increased funding.
I look forward to engaging our witnesses on MARAD and FMC’s ongoing work to strengthen our supply chain and grow the United States commercial maritime fleet.
Thank you, and I yield back.
Ranking Member Carbajal:
Thank you, Chairman Webster, for scheduling today’s hearing on the review of the Fiscal Year 2025 Budget Request for the Maritime Administration and the Federal Maritime Commission.
I look forward to hearing from Chairman Maffei and Administrator Phillips on the President’s budget request and their agency priorities for the upcoming year.
Stability in international shipping is integral to a strong economy.
During the COVID-19 pandemic, weaknesses in our supply chain were amplified as landside port congestion and unfair shipping practices by foreign ocean carriers led to backlogs and price increases. This, in turn, contributed to inflation.
Tasked with ensuring fairness in international shipping, the FMC has key authorities which allow it to safeguard transparent and equitable maritime commerce.
The reforms in the bipartisan Ocean Shipping Reform Act, which passed out of this Subcommittee last Congress before becoming law, strengthened the FMC’s authority to investigate unfair ocean shipping carrier fees and facilitate the efficient movement of cargo through U.S. ports.
In the two years since passage of the Ocean Shipping Reform Act, the FMC has worked expeditiously to utilize their new authorities, established new regulations around detention and demurrage billing practices, and as a result, have made international shipping more fair for American shippers.
It is important that the FMC is sufficiently funded so that it can properly continue to carry out these reforms which benefit American businesses and consumers alike. That is why I am happy to see an $8 million increase in the President’s budget request for the FMC.
Beyond a fair shipping process, the U.S. economy depends upon a robust maritime industry. I fear that without continued support for our U.S. flag fleet, fair shipping practices will only get us so far. The U.S. merchant marine is shrinking, and availability of American merchant mariners is dwindling. This puts our sealift capabilities, national defense, and economy in jeopardy.
More and more we rely on foreign ocean carriers to transport our goods. It is MARAD’s responsibility to promote a vibrant maritime industry. I expect to hear today how we can revitalize the American maritime industry.
Unfortunately, the fiscal year 2024 appropriations resulted in a substantial cut to MARAD discretionary programs meant to support the industry. I worry about the precedent this has created as the FY25 funding request follows this downward trend.
MARAD oversees vital grant programs that fund projects to modernize our infrastructure, including the Maritime Environmental and Technical Assistance program, or META, and the Port Infrastructure Development Program.
The President’s budget request includes $6 million for META, which is a $1.5 million decrease over last year’s budget. This is disappointing.
Decreases over two years are not the trend we want to see. This program supports the research, development, and deployment of new technology in the maritime industry, particularly low or zero-carbon technologies.
These technologies are crucial for reducing harmful emissions and protecting our public health and the environment, especially for port communities, where air pollution is statistically worse. We must continue to invest in programs that foster innovation not only to address climate change but also to make the United States a leader in this new technology.
The Port Infrastructure Development Program, referred to as PIDP, also supports decarbonization projects, which help reduce emissions and build a more resilient, reliable marine transportation system. Yet, despite the importance of this program, we saw a substantial decrease in FY24 funding and the FY25 budget request follows suit.
I am heartened to see an increase in funding for the U.S. Merchant Marine Academy. Administrator Phillips has done an excellent job continuing to pursue systemic change to the culture that has resulted in sexual violence and harassment at the U.S. Merchant Marine Academy and in the commercial maritime industry. This issue is of the utmost importance and, while our work is not done, I commend your leadership efforts to make the maritime industry a safe and desirable workplace for all.
Thank you to our witnesses and attendees for their participation today. I look forward to a robust discussion about how the 2025 budget request can support investments in improving the U.S marine transportation system.
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